(Updates prices)
Feb 16 (Reuters) - Copper prices in London rebounded
from a five-week low on Thursday as hopes for a demand recovery
in top consumer China offset negative effect from a stronger
dollar.
Three-month copper on the London Metal Exchange rose
0.5% to $8,903 a tonne by 0712 GMT, while aluminium increased 0.5% to $2,396.50 a tonne, zinc advanced 0.5%
to $3,032 a tonne and lead was up 0.2% to $2,057 a
tonne.
LME copper hit a five-week low on Wednesday as fears of
further rate hikes boosted the dollar, making greenback-priced
metals more expensive to holders of other currencies.
While actual copper demand remained tepid, prices were
supported by hopes that consumption of the metal will eventually
rebound in China after the country removed harsh COVID-19
restrictions.
"The demand is bad but the outlook is good. People are just
hoping for a recovery in March. The drop yesterday was too much,
so there was some adjustment today," said a metals trader,
expecting prices to continue to trade sideway until March.
In early signs of recovery in China, new home prices there
rose in January for the first time in a year, as the end of the
zero-COVID regime, favourable property policies and market
expectations for more stimulus measures boosted demand.
The property sector accounts for a vast portion of metals
demand.
However, market participants were still hoping for more
stimulus programmes from the Chinese government targeting
metals-heavy industries.
The most-traded March copper contract on the Shanghai
Futures Exchange fell 0.5% to 68,510 yuan ($9,989.36) a
tonne, nickel dropped 1.1% to 205,000 yuan a tonne,
zinc shed 1% to 22,880 yuan a tonne.
SHFE aluminium was almost unchanged at 18,485 yuan
a tonne and tin increased 0.3% to 213,430 yuan a tonne,
while lead fell 0.5% to 15,155 yuan a tonne.
For the top stories in metals and other news, click or ($1 = 6.8583 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Savio D'Souza and
Uttaresh.V)
mai.nguyen.thomsonreuters.com@reuters.net))
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